HARARE The European Union (EU) and the World Bank (WB) are not yet ready to establish normal ties with Zimbabwe or resume aid despite a "positive evolution" in politics the country.
The EU in a letter made public on Thursday said it shared the opinion that there were indications of a positive evolution of the political situation in Zimbabwe, while the WB was of the opinion that right conditions were yet to be created in the country for it to re-engage on a full-fledged economic development programme.
“We are following the situation with great attention, in the hope that it will as soon as possible lead to a new phase of stability, respect for human rights and rule of law and economic development,” said the EU bloc in a letter to John Kaputin, secretary general of African, Caribbean and Pacific nations.
It underlined that: “However, the pace at which the new government can deliver on its own programme to the people of Zimbabwe still remains a major concern for all, both in the country and within the international community.”
The letter said that a “dialogue” proposed in March by President Robert Mugabe “should allow us to define a roadmap of reciprocal undertakings”, which would “hopefully bring us to a progressive resumption of our full cooperation.”
Such a move could lead to a resumption of development aid which has been frozen for several years. At the moment the European Commission can only send humanitarian aid — 90 million euros were given in 2007 — to the people.
The European Union and the United States maintain a travel ban and asset freeze on Mugabe and his inner circle in protest at controversial elections and alleged human rights abuses by his government. The EU toughened its sanctions in January.
WB Vice President for the Africa Region Obiageli Ezekwesili also on Thursday said although the bank still does not do business with Harare, it is working through NGOs and aid agencies to mitigate the impact of a drastically declined economy on the poorest Zimbabweans.
According to the banks website, Ezekwesili said the WB had provided grant funding through the United Nations Food and Agricultural Organization (FAO) to ensure that small holder farmers, who are already badly-hit by the global food crisis and Zimbabwes crumbling agricultural and wider economy, can get seeds, fertilizers and other inputs.
The bank was also providing resources to NGOs and civil society organisations to combat HIV and Aids and other pandemics and is preparing a grant to work with the United Kingdoms Department for International Development (DfID) on social safety nets to protect the poor.
Ezekwesili explained that safety net programmes were desperately needed to help mitigate the devastating consequences of Zimbabwes economic collapse on the poor.
The countrys economy shrunk 50 percent over the last eight years, and by as much as 14 percent in the last year alone.
In addition, the bank is funding a needs assessment in anticipation of future work that would have to be done, once the right conditions are in place, in key areas to help jump-start an economic revival agriculture, mining, tourism, energy, public finance management, etc.
The total amount of grant funding involved with these initiatives is smaller than the US$22 million mentioned by media outlets last week in reports that also appeared to falsely suggested the bank was re-engaging with Zimbabwe.
Post published in: Agriculture